SMM Aluminum Weekly Price Review and Forecast (Mar. 30-Apr. 3, 2015)

SHANGHAI, Mar. 30 (SMM) – Bulls were cautious about jumping in after SHFE 1506 aluminum contract hit RMB 13,400/mt. But the most active contract found solid support at the 5-day moving average due to limited number of bears. In China’s spot market, suppliers held back goods, and supply of goods with invoice dating March was tight. This allowed spot discounts to narrow. Downstream consumption remained sluggish.   

 

SHFE 1506 aluminum contract might rise to RMB 13,300-13,500/mt as rising LME aluminum cheered investors up. In China’s spot market, suppliers will continue to hold back goods at lows, which will allow spot discounts to shrink slightly to RMB 220-270/mt over SHFE front-month contract.